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blankseplocked CCP Financials Year Ending 2010 - GREED or NEED?
 
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Othran
Brutor Tribe
Posted - 2011.06.27 17:23:00 - [1]
 

Edited by: Othran on 27/06/2011 17:28:59
Edited by: Othran on 27/06/2011 17:25:57
http://www.megaupload.com/?d=F6YJU9QD

For those with beancounter minds who would like to argue for/against the case that CCP needs the cash from MT.

My untutored thoughts

1) profit fell in 2010 compared to 2009 but there was a lot of cash in hand kept back too - loan payback or share buyback?
2) development costs went up 35% in 2010. Wasn't on Eve.
3) company appears to be spending around 25 mill euros a year on capitalised s/w dev - that has to be WoD/Dust surely?
4) "other current liabilities" - what are they, specifically how much of that is PLEX*
5) its possible that since CCP ended up having to pay foreign workers with currency other than ISK (real FFS!) that cashflow is not good.

Anyway I don't know. Like most of you I would like to work out why CCP wants to change the game.

As an aside - CCP looks stunningly profitable when you take out WoD/Dust dev. They must be the 35% increase mmm?

*don't try to tell me there's a mere 30k PLEX in-game. We wouldn't be in this situation for 600k euros would we? CCP need a PLEX sink and there's a reason for that - investors get nervous with this. Of course CCP didn't ever intend PLEX to go this far, its a huge liability you can't even pay off <edit> because people would rather keep them. PLEX from now on should have a 12 month "use by" date on it really.

Edit - I don't deserve the credit for getting it uploaded. Someone else did that. I'm posting for discussion....

Xinxua
Posted - 2011.06.27 19:10:00 - [2]
 

Net profit fell yet Income has gone up significantly. Total Assets have gone up significantly and equity and liability slightly.

Did you look at the balance sheet or are you having trouble understanding it?

Othran
Brutor Tribe
Posted - 2011.06.27 19:47:00 - [3]
 

Originally by: Xinxua
Net profit fell yet Income has gone up significantly. Total Assets have gone up significantly and equity and liability slightly.

Did you look at the balance sheet or are you having trouble understanding it?



Not at all. The "assets" are capitalised s/w development. ie the unfinished WoD/Dust dev.

Re the cash in hand - CCP took out a 10mill euro loan in 2008; right about the time they had to switch most of the staff to Euros/dollars for pay.

Now which part of BURNING 25mill a year on non-Eve stuff do you fail to grasp?

Cocomomo
Posted - 2011.06.27 20:02:00 - [4]
 

wow all that money coud've gone to the development of EVE =(

Chill Athonille
Posted - 2011.06.27 20:06:00 - [5]
 

Originally by: Othran

4) "other current liabilities" - what are they, specifically how much of that is PLEX*



PLEX isn't under other current liabilities in this instance. PLEX should be under Deferred Income right after other current liabilities. Item number 23 on page 35. $3.5m

Moolti
Gallente
Gradient
Electus Matari
Posted - 2011.06.27 20:10:00 - [6]
 

Exchange rate, exchange rate, exchange rate.

Several years ago the krona was a strong currency, this made Shanghai/Atlanta comparitivly cheap. Also made White Wolf cheap to buy. Iceland was also awash in capital, and loans were cheap and easy to get. Since the Krona has bombed (it's essentially worthless) this makes those offices relativly expensive. Loans are now hard to come by, (in a global sense as well as in Iceland).

The flip side is that CCP gets most of it's income in hard foreign currency and pays for local (iceland) development in cheap Krona. It

Cancel Align NOW
Posted - 2011.06.27 20:18:00 - [7]
 

Op.

Thank you for posting this. It does make interesting reading. It does not make me feel less like a goose.

Vincentus
Posted - 2011.06.27 20:39:00 - [8]
 

Edited by: Vincentus on 27/06/2011 20:44:36
Edited by: Vincentus on 27/06/2011 20:44:04
Very interesting read. Had been looking for this but could only find some basic 2008 figures. After a quick glance, I'd say the most telling things are that (in no particular order):

- revenue gone up with 6M, to 57M
- the called in the partly paid shares last year, adding another 16M in cash (without it, they would have negative cash of 5M...)
- their liabilities are 4M higher than their assets, while last year they had a surplus of 6M in assets (note that by far the highest asset is development)
- Salaries risen by 8M, average number of positions for 2010 doesn't even take into account all the new employees (558 vs 603), so are probably even higher this year.
- 23M in development cost, which is 50% of their revenue

Strapped for cash?

Vincentus
Posted - 2011.06.27 20:44:00 - [9]
 

Edited by: Vincentus on 27/06/2011 20:46:23
Originally by: Moolti
Exchange rate, exchange rate, exchange rate.

Several years ago the krona was a strong currency, this made Shanghai/Atlanta comparitivly cheap. Also made White Wolf cheap to buy. Iceland was also awash in capital, and loans were cheap and easy to get. Since the Krona has bombed (it's essentially worthless) this makes those offices relativly expensive. Loans are now hard to come by, (in a global sense as well as in Iceland).

The flip side is that CCP gets most of it's income in hard foreign currency and pays for local (iceland) development in cheap Krona. It


Hm dunno if this is such a big problem, like you say most of their costs are in either dollars (which can be paid with dollars they receive from the US) or in Krona, which should make them bloody rich now in Iceland with all the Euro's they are receiving. I bet that is why Zulu is buying $1000,- dollar pants :)

Sidenote: the majority of their customers is from Europe Very Happy

Jith
Posted - 2011.06.27 20:44:00 - [10]
 

IMO WoD was a bad bad idea.

Othran
Brutor Tribe
Posted - 2011.06.28 06:29:00 - [11]
 

Originally by: Chill Athonille
Originally by: Othran

4) "other current liabilities" - what are they, specifically how much of that is PLEX*



PLEX isn't under other current liabilities in this instance. PLEX should be under Deferred Income right after other current liabilities. Item number 23 on page 35. $3.5m


Thanks for that. Hmmm looks like a lot more than 30k PLEX in-game one way or another.

I've read the dissections on other forums -

tl;dr seems to be that within the next 6-9 months CCP will require additional finance to stay in business. Previous rumours suggest that investors have declined to provide additional funding so it will have to be a loan.


 

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